Panic has trailed investment in the equity segment of the Nigerian Stock Exchange, NSE, at the end of November, when stocks declined by N2.062 trillion.
Investment in stock market was critically on setback as investors’ confidence faded, leading to many stocks to be on their year low.
The two major market indicators (NSE All Share Index and market capitalization) which opened the year at 34,657.15 basis points and N11.478 trillion plunged by 7,271.46 points (20.98 per cent) and N2.062 trillion (17.96 per cent) to end the 11 months at 27,385.69 points and N9.416 trillion respectively.
Analysts have attributed market lull to lack of clear policies by federal government to drive the market.
Investors showed interest at the emergence of the current administration when stock market recorded N906 billion, representing 8.33 per cent of highest single trading day gain when Independent Electoral Commission (INEC) declared President Muhammadu Buhari winner of presidential election.
However, stocks value declined by N2.153 trillion between May 29 when Buhari assumed office and November 30.
Market capitalization was at N11.569 trillion on May 29 and dropped to N9.416 trillion on November 30, while All Share Index dipped by 6,658.96 points during the same period of May to November.
Meanwhile, transaction during the month of November plunged by N612 billion as against N701 billion loss recorded in September.
Key investors appeared not convinced about the strength of the domestic macro fundamentals, in spite of the expansionary monetary stance of the Monetary Policy Committee (MPC) that saw a 200 basis points reduction in the Cash Reserve Ratio (CRR), the first cut in six years, in the last MPC meeting for the year.
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